Our analysis is based on comparing C&F Financial Corp. with the following peers – First US Bancshares, Inc., PNC Financial Services Group, Inc., BB&T Corporation, CNB Financial Corporation, M&T Bank Corporation, IBERIABANK Corporation, Wells Fargo & Company, Ameris Bancorp and Capital One Financial Corporation (FUSB-US, PNC-US, BBT-US, CCNE-US, MTB-US, IBKC-US, WFC-US, ABCB-US and COF-US).
C&F Financial Corp.’s dividend yield is 2.08 percent and its dividend payout is 35.21 percent. This compares to a peer median dividend yield of 1.80 percent and a payout level of 37.13 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 50 out of a possible score of 100, lessens its attractiveness for dividend investors.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), CFFI-US paid a medium quality dividend, which represents a yield of 2.06% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 2.74x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), CFFI-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 5.96x), investing cash flow (coverage of -11.61x), issuance cash flow (coverage of 11.32x) and twelve-month prior cash (coverage of 2.13x), for a total dividend coverage of 3.74x.
CFFI-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.29x) and net share buybacks (coverage of -0.02x). Thus, the total coverage including share buybacks is 3.76x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||2.9||2.48||2.98||3.09||2.58||2.08|
|Dividend Payout (%)||22.22||27.75||33.15||33.15||33.16||35.21|
A complete list of metrics and analysis is available on the company page.
C&F Financial Corp. is a bank holding company, which engages in the provision of banking services to individuals and businesses. It operates its business through the following segments: Retail Banking; Mortgage Banking; Consumer Finance; and Other. The Retail Banking segment provides checking and savings deposit accounts; and business, real estate, development, mortgage, home equity, and installment loans. The Mortgage Banking segment offers ancillary mortgage loan origination services for loan settlement and residential appraisals. The Consumer Finance segment comprises of automobile financing through lending programs that are designed to serve customers in the non-prime market who have limited access to traditional automobile financing. The Others segment includes a full-service brokerage firm that derives revenues from offering investment services and insurance products. The company was founded in March 1994 and is headquartered in West Point, VA.
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